Toronto Real Estate, Condos, Homes and Property Buy, Sell, Renthttp://www.torontorealestatelife.ca
Buy, Sell, Rent Condos, Homes Propery Real EstateThu, 26 Nov 2015 14:49:42 +0000en-UShourly1https://wordpress.org/?v=4.3.18Exuberance in Torontohttp://www.torontorealestatelife.ca/exuberance-in-toronto/
http://www.torontorealestatelife.ca/exuberance-in-toronto/#commentsSat, 15 Mar 2014 13:22:53 +0000http://www.torontorealestatelife.ca/?p=2673There is exuberance in Toronto’s real estate when Manning Avenue suddenly came up with the most sought after houses with asking prices below $1 million. These gave buyers the impetus to go on a buying spree to own a house of their own at less than $1 million. However, what is presently happening is said to be a seller’s market, Continue Reading

]]>There is exuberance in Toronto’s real estate when Manning Avenue suddenly came up with the most sought after houses with asking prices below $1 million. These gave buyers the impetus to go on a buying spree to own a house of their own at less than $1 million. However, what is presently happening is said to be a seller’s market, where sales prices are higher than the asking price.

Prices are going haywire where brokers see properties needing renovation get 30 plus bidders; and a semi-detached unit with a listed price of $649,000 was later sold at 40 percent higher than its asking price— to about $908,000 plus. The buying frenzy has not stopped and every agent thinks that there is still lack of listings to go around.

Properties in Manning are being lapped up like hotcakes with a renovated Victorian style house of $849,000, eventually got a bid price of more than $1 million. Another property in the same area with an asking price of $750,000, was sold to the highest bidder at $1.035 million.

This upward trend in real estate prices are also seen in other areas. Places like Markham, saw a three story detached apartment , sold for nine percent more than its asking price $1.35 million (vis-à-vis $1.471 million). The frenzy in real estate homes are seen in Little Italy that covers Beaconsfield, Bickford Part, Beaconsfield—among other areas.

Buyer interest is filling on Condos and townhouses with the recent real estate development in Ossington called Block , that lures in new buyers because of its demographic appeal. The selling prices of condos are considered healthy in the resale market. However, a listing price of more than $1 million in Sotheby’s that was at the high end side of the market , only got one offer above its asking price.

The winning bidders were a couple who made sure that there will be no other rival bid. Nonetheless, homeowners willing to sell their homes are not that many. Most seniors prefer to stay in their homes and a listing would only be made available if they opt to move to other areas. The only problem is that they stayed well into their 90’s before they decide.

Some agents like Mark Savel of Sage Real Estate Ltd., had an altogether different experience when he took his clients on the high end offerings on Manning. The budget specified was from $650,000 to $900,000. They saw a house that they liked with an asking price of $849,000. However, it was apparent that there would be a bidding war as the date approached.

When they saw the frenzy of eager buyers, the clients dropped it off and decided to pass. The reason is that this couple had already participated in four bids and they were battle scarred. They came up with a new strategy by looking for the condo that they want that are not yet listed yet.

When they found what they wanted, they jump the gun by submitting an offer ahead of the others. The seller accepted the offer and the clients were happy with the turnout of events. They felt that they had a good buy since there is potential for the property to appreciate more in value over the long term.

Most realtors foresee that the listing for centrally located single family detached dwelling unit may increase in spring. Two sellers have been known to include their houses for listing in the coming season. Many sellers are moving up towards the high end homes with a price range of over $1 million. With this niche, there is not much competitors, since the required down payment is at least $200,000.

It remains to be seen if the bid wars are going to happen in the $1 million and upward range too. Some buyers who are bided out of the Central Toronto area may opt to look at the suburbs – towards the north and west communities in Vaugham where houses are cheaper. With the completion of the subway transit, much excitement is generated for people to head towards outlying communities.

Many parents are now looking into school rankings through the Fraser Institute to find schools that have strong French language studies. It has been noted that schools in Vaugham have increased their enrolment due to their French language offerings.

The outlying communities of Maple, Paterson, and Vellore have seen a decrease in the number of listings since 2012. Real estate prices, however, have firmed up due to increase in competition among buyers. On the other hand, listing for Kleinburn and Islington Wood has continued to increase since 2012.

Brokers have said that it is still early to foresee on what will be the emerging trend for the housing sector. They believe, though that government policies on housing mortgage will play a vital role on the coming trends.

]]>http://www.torontorealestatelife.ca/exuberance-in-toronto/feed/0Ontario Land transfer tax an election issuehttp://www.torontorealestatelife.ca/ontario-land-transfer-tax-an-election-issue/
http://www.torontorealestatelife.ca/ontario-land-transfer-tax-an-election-issue/#commentsWed, 12 Mar 2014 11:43:43 +0000http://www.torontorealestatelife.ca/?p=2665Ontario Land transfer tax an election issue One of the factors affecting home prices in Toronto is provincial land tax. Outside of the city, this would amount to around one to two percent of the sales price. In the Toronto area, the percentages would be higher at about two times the rate. The imposition of the provincial land tax would Continue Reading

One of the factors affecting home prices in Toronto is provincial land tax. Outside of the city, this would amount to around one to two percent of the sales price. In the Toronto area, the percentages would be higher at about two times the rate.

The imposition of the provincial land tax would most likely result to reduction of home sales and a slower rate of economic activity. With this in mind, the Toronto Real Estate Board has lobbied in the last two years for the removal of the said tax.

It is interesting to note that the provincial land tax was never introduced in any other city in Ontario, though they may have the power to do so. In Toronto, the tax has continued to penalize home-buyers who are faced with spiraling increases in home prices.

The reason Toronto cannot stop this tax imposition is because the city needs it.

The tax angle is heavy. Toronto home-buyers who are buying for the first time do not pay land transfer tax when the purchase price is $400,000 or less. However, any home above this pegged rate must pay $3,725; and around $15,425 for homes that are bought for more than one million dollars. This is on top of the land transfer tax that is imposed by Ontario in the amount of $16,475; thereby, the total tax payable can reach to $32,000 for land transfer tax alone on homes that are bought for a million dollars today.

The issue on taxes have become a platform for those vying for mayor in the city. The present Mayor, Rob Ford plants to impose a tax cut of five percent across the board. Candidate Karen Stitz opts to impose a higher tax rate on higher valued properties to make the taxes equitable. Another candidate, David Socknacki, would impose taxes based on the rate of inflation; while John Tory, has not stated his platform on taxes yet.

Suggestions for candidates to make the industry better follows:

—–On Taxes

Reduce by ten percent all taxes across the board. There should be a change in policy where no one pays taxes for homes worth $400,000 and below, whether or not you owned a home before.

——Credit

Credit of $5,725 must be granted for first time home buyers. Land transfer taxes should not be imposed on homes that are priced at $500,000 and below.

Rebate should be given to all first time homeowners in the Toronto area, whether they have homes elsewhere in Ontario or not.

Things to consider regarding land transfer tax

—-Rebates on First Time Buyer

If you buy your first home in Toronto, you are entitled to a $3,725 rebate for your 2nd home; if you buy outside of Toronto, you may pay only one tax but would be entitled to a $2,000 rebate. It is then advisable to buy your first home in Toronto and use the 2nd rebate of $3,725 to buy the property elsewhere. When you buy your first home outside of Toronto and decide to live in Toronto later, you will be subjected to a double tax without rebate.

—-Rules on Spousal Ownership

Taxes pertaining to common dwelling units owned by spouses would have different tax implications. If your spouse owns a house while being married to you, you are not entitled to a first buyer rebate, even if you have not bought a house before. If your spouse and you decides to buy a house, you shall be entitled to a 50 percent tax rebate which is $1,000 in Ontario and &1,812.50 in Toronto. However, if you decide on owning 99 percent of the home, and your spouse only one percent, then you would be entitled to a 99 percent rebate that would equal to $1,980 in Ontario and $3,692.75 in Toronto.

Transfer of property

In case you decide to transfer title of the property to your spouse, for reasons of love and affection, land transfer taxes will not be paid. If the property is transferred to a child, and there is no encumbrance or lien attached to it, no land transfer tax needs to be paid. However, if the property is worth $500,000 and say $200,000 is encumbered, land transfer taxes would have to be paid on the $200,000. Understanding the intricacies of land transfer taxes on properties can help the homeowner save a lot of money.

]]>http://www.torontorealestatelife.ca/ontario-land-transfer-tax-an-election-issue/feed/0Toronto Residential Real Estate FAQ’shttp://www.torontorealestatelife.ca/residential-real-estate-faqs/
http://www.torontorealestatelife.ca/residential-real-estate-faqs/#commentsSat, 01 Mar 2014 23:12:30 +0000http://www.torontorealestatelife.ca/?p=2649What are building permits? We can find the answers to queries in the Toronto.ca homeowners’ guide. Q: We plan to buy a home where a knob and tube wiring is in place. What do we do? A: There are several options that are available to you. First, you can rewire. You can ask a reputable electrician for Continue Reading

We can find the answers to queries in the Toronto.ca homeowners’ guide.

Q: We plan to buy a home where a knob and tube wiring is in place. What do we do?

A: There are several options that are available to you. First, you can rewire. You can ask a reputable electrician for a quotation so you will know the cost beforehand. You can do this procedure during home inspection. Insurance companies normally gives you time to rewire after closing the sale. The second option is to keep the knob and tube in place and find an insurance company that will cover the home. This might be difficult to do, but it is doable. This type of rewiring is allowed under the authority information bulletin 02-03 of the Electrical Safety Authority — if it meet s certain criteria. If you get an approval on wiring safety, you will have no trouble getting insurance as stated in the Insurance Bureau of Canada 416-445-5912.

Q: What is a knob and tube wiring?

A: This is the old type of electrical wiring that was in place until the 1950s. This consists of two wires that are linked by the use of ceramic knobs and tube to create a circuit. The present wiring system, bundles these two wires together with the use of a ground wire in a plastic sheathing cable. This cable then runs through the holes in the structural members and is held by clamps together. While this system may not be intrinsically dangerous, its insulation may be outdated and no longer workable. This type of wiring is concealed behind the ceilings and walls of the home and is hard to inspect. For more information, you may refer to the August Beaches HomeWatch.

Q: Would it be hard to get insurance because I have knob and tube wiring?

Insurance companies are hesitant most times, to cover older homes with knob and tube wiring. There are issues on safety concerns, which redound to buyers unable to renew insurance coverage on old homes.

The Insurance Bureau of Canada (IBC) stated that there are few companies that provides insurance coverage for homes with tube and wiring systems in Ontario. However, Carson Dunlop, a home inspection company, has an exclusive agreement with Liberty Mutual to provide insurance coverage, if the former is made to inspect the home. For more information, please see the Insurance Brokers Association of Ontario (IBAO) website.

A more in-depth information are provided in the August issue in the Beaches HomeWatch page.

Q. Will I have problems about galvanized plumbing?

A. There are difficulties in finding an insurance agency for these type of homes, as indicated by IBAO. However, some specialty companies exist that grants coverage if specified conditions are met. An example, would be Genmark who provides coverage if —there are no previous claims for the galvanized plumbing, a thorough inspection was made, and corroded pipings were replaced. For further information, please refer to http://www.amerispec.ca/english/brochures/plumbing.htm

Q. How much will I spend for closing cost?

A. There is no hard and fast rule. The Rule of Thumb estimate is 2 percent of the purchase price.

Q: What are the Costs that I may incur?

Land Transfer Tax- Provincial: Buyers of real estate pays a onetime payment; new home buyers are exempt from payment. The range is from 1.5 percent to 2.0 percent of the purchase price.

Land Transfer Tax City -Toronto: This is a levy imposed by the Toronto City Council for the payment of Municipal Land Transfer Tax on top of the Provincial Land Transfer Tax beginning February 2008. The range is from 1.5 percent to 2.0 percent of the purchase price.

Legal Fees: Payable to the legal counsel who would register the mortgage and help with closing the purchase. To avoid confusion, it would be best to inquire about legal fees and reimbursable disbursements before hand. The cost may range from $1,000 to $1,500.

Home Inspection and Appraisal Fees: These are paid for the inspection of the home if it is in good condition. The appraisal ascertains that the price you pay for the home is in line with prevailing market values. The budget is about $500.

PST on CMHC (Canada Mortgage and Home Corporation) mortgage (Below 25% down payment): This is applicable to CMHC insurance that comprises eight percent of the insurance premium. Approximate budget is from $300 to $500.

Interest, property tax and other adjustments: The computation is based on the closing date of purchase. There is need to reimburse the previous owner if he has paid up property taxes up to a certain cut-off period leading to the closing dates. Approximate cost is $500.

Closing cost: This would amount to approximately two percent of the purchase price.

Buying a House

If you are intent on buying a particular house and have signed the Agreement of Purchase and Sale, you need to fill up the OHOSP Home Purchase Declaration right away. This should be done four weeks before closing so as to give you ample time. You can get this from the financial institution where you filled your OHOSP. The funds will be released through your solicitor who will apply it as payment of the home. If you do not have a solicitor, you may apply with the Ministry of Finance so the funds can be released by the agency to you.

Closing an OHOSP without Buying a Home

If you do not have plans of buying a home and opts to close your plan instead, you will not be eligible for tax credit that year. You will instead recover only 75 percent of the funds from the plan, and the 25 percent will be forwarded to the Ministry of Finance for tax credit. The balance, if there be any, will be returned to you plus interest.

OHOSP Tax Credits

The OHOSP tax credits are computed based on your net income for the year and your contribution to OHOSP every year. Only one spouse can claim the OHOST tax credit and are based on your annual net income (line 236 of your income tax form) and contributions to your plan per year.

On the other hand, the Land Transfer Tax (LTT) refund, which was initially part of the original plan, has been discontinued. The LTT refunds however, will be issued to those who opened the plan prior to January 1, 1994.

Q: What is UFFI and its effects on people’s health?

A: UFFI is a retrofit insulation that was banned due to perceptions that it poses a health risk to the public. This was used in most Canadian homes — from 1977-1980, under the Canadian Home Insulation Program (CHIP).

A litigation process followed and the use of UFFI in homes depressed property values when in used due to this public perception. After eight years of court battle, the Quebec Supreme Court rendered a ruling against the plaintiff and ordered it to pay the defendants the cost of litigation.

UFFI is a good house insulator. It fell in disfavor due to wrong public perception that it causes respiratory ailments. The reason is that formaldehyde gas is emitted above allowable concentration and causes irritation to people who are sensitive to it. These allegations were baseless. You can find higher gas readings in newly installed carpets today than a house with UFFI, two weeks after installation.

In my opinion, I would say that there is no issue about the use of UFFI in the home. I would not have qualms in living in a house that has UFFI installed. I suggest that the Real Estate Board and Mortgage lenders remove the clauses for penalties in the use of UFFI. Source: Tim Purtill, Canspec

Q: Is there a danger to using Aluminum Wiring?

A: The use of aluminum wiring was done between 1969 and 1975. It was discontinued since it has higher maintenance cost as compared to copper. Aluminum has its disadvantages —it has a higher expansion coefficient than copper and can mushroom under peak loads. This would result to removal of plugs and switches and screws to be tightened for good contact. Not doing this would result to plugs and lights ceasing to operate. This is due to poor contact points which causes hot spots to occur and make the aluminum wire brittle. This eventually leads to breakage sooner or later.

With aluminum wiring in placed, it would be safe to assume that the electrical system must have experienced peak loads one time or another if the house has been around in the past 25 to 30 years. If no electrical irregularities were found during house inspection, insurance may be availed of but at higher premium level. If however, electrical irregularities were found, it is advisable to hire a professional electrician to tune up the system. The will cost $250 more or less. Source: Tim Purtill, Canspec Home Services.

Q: What are the reasonable costs of upgrades that we may need in our home?

A: You may refer to the posts by Carson and Dunlop Home Inspection Company which has a quick reference to the construction costs at 2005 prices. Source links is at: http://www.carsondunlop.com/

]]>http://www.torontorealestatelife.ca/residential-real-estate-faqs/feed/0Tips on Water Proofing Your Toronto Homehttp://www.torontorealestatelife.ca/water-proofing/
http://www.torontorealestatelife.ca/water-proofing/#commentsSat, 01 Mar 2014 23:10:52 +0000http://www.torontorealestatelife.ca/?p=2647Tips on Water Proofing Your Toronto Home There can never be more horrifying , than finding your basement flooded with water.If you see leaks on your walls and floor in the basement area —- there is need to call immediately a professional contractor who specializes in basement waterproofing. You may find it daunting however, that there are many ways to Continue Reading

There can never be more horrifying , than finding your basement flooded with water.If you see leaks on your walls and floor in the basement area —- there is need to call immediately a professional contractor who specializes in basement waterproofing. You may find it daunting however, that there are many ways to waterproof your basement. What choice do you use?

I. Finding the source of the problem

If there is water entering the basement area, the first thing to do is find the source outside your home. You have to check for cracks in your gutters, downspout, and drainage system — if it is the source of the problem.

Water in the perimeter area of the foundation should flow away and not go towards the exterior walls. Roof drainage should do likewise — hence, position of the basement windows should be located above ground level and be leaded for water tightness.

There is need to check on leaks to prevent spending large sums of money later. Regular maintenance is needed to keep the gutter clean with water flowing away from the house.

II. Get quotations from several companies

The cost of hiring a professional contractor can go to as little as $300 to $500 for minor repairs; and from upwards of $2,000 for major repairs. This is the reason why you need to get estimates from various contractors. Some companies are known to rely on sales techniques rather than quality repairs to get their customers.

Every homeowner wants to have a thorough evaluation of their homes. If contractors only look at a particular area, that should be a cause of concern. He may be employing high pressure selling techniques and you should not be swayed by it. It is advisable to ask around for somebody you can trust.

III. Each Water Proofing Problem is Unique

Each waterproofing problem is different and there is no single cure for all problems. The method that you use should be designed specifically for you. The cause of the problems may be varied —-cracks or deteriorated basement walls, movements in the foundation, inadequate back filling when construction began, clogging and deterioration of drains and sewer lines.

IV. Remedies for waterproofing the basement
The type of repair used is dependent upon the kind of house foundation that you have. Oftentimes, varied repair methods are used to keep it in tip top condition.

V. Paint products used for waterproofing

The use of waterproofing primer and paints are oftentimes not recommended for use by contractors. They are one in saying that this specialized paint would not solve the problem unless the source of the water leak is found.

VI. Crack Injections as Fillers

This type of repair is suitable for foundations where concrete cement is poured. The assumption is that the leaks do not come from the floors but from the walls. A foundation that uses bricks, stones or cinder blocks are oftentimes not ideal candidates for crack injections.

Using epoxy and polyurethane as fillers for cracks can help water in seeping through the basement. However, this method is oftentimes regarded as a band-aid type of solution that would not be suitable as a permanent solution over the long run.

The cost of crack injections can range from $300 to $500, depending on the amount of work to be done.

V. Excavation of the exterior premises for waterproofing

This method would require the excavation of around 6 to 8 feet deep of trenches surrounding the foundation wall. The repair would require the installation of new drainage tiles or French drains. The contractors would apply waterproofing materials to the outer wall so water does not seep in.

The extensive excavation method that requires exterior water proofing, is more expensive than other methods. However, this would be cheaper on the long run since it would no longer require maintenance as soon as the project is completed .
The downside to this method would not only be the cost but the disruption in the home gardens, landscaping, porches and driveways. It is necessary for you to inquire on what portion of the property will be affected before you start. It would be advisable to come up with a plan of action to minimize the destruction of your home’s appearance . Exterior excavation is not advisable on homes that are sitting atop high water table areas.

Typical project cost: $80 – $100 per linear foot

VII. Excavation of the interior premises for waterproofing

A more recent innovation in basement waterproofing is interior excavation because it is cheaper than outer excavation and far less invasive. This method addresses issues on hydro-static pressure – or the pressure of groundwater forcing its way f through the basement walls. The interior excavations system deals with water after it has gained entry into the basement; it is oftentimes called the negative side waterproofing.

This type is also called water control or water management, since it deals with water problems after the fact rather that preventing its entry into the home. When used, it is done by jack hammering the concrete floors to install a new drainage system. The contractor may create trenches of 4 to 18 inches to install the drainage tiles or piping that routes water from seepage areas to the sumping pump system.

To be effective, the new piping system must be free of obstructions. The contractors install access ports for ease of maintenance. A sump pump is then installed to drain the water out. A backup battery-operated sump pump is also put in place to prevent water entry during power outages.

While these methods are less costly than exterior systems, they have their own drawbacks too. Excavating can cause structural damages and may compromise the integrity of the concrete floors and walls.

]]>http://www.torontorealestatelife.ca/water-proofing/feed/0Finding Your Perfect Home In Torontohttp://www.torontorealestatelife.ca/finding-your-perfect-home-in-toronto/
http://www.torontorealestatelife.ca/finding-your-perfect-home-in-toronto/#commentsSat, 01 Mar 2014 23:09:23 +0000http://www.torontorealestatelife.ca/?p=2645Finding Your Perfect Home In Toronto Finding a home is oftentimes a difficult process. You have to think of the smallest detail that would not only affect you at present but also that in the future. If you encounter problems on buying a home or choosing the best real estate option for investment, please call us up or send us Continue Reading

Finding a home is oftentimes a difficult process. You have to think of the smallest detail that would not only affect you at present but also that in the future. If you encounter problems on buying a home or choosing the best real estate option for investment, please call us up or send us an email — and we will be glad to answer your queries to talk about your specific needs.

The following things need to be considered in choosing the type of home to buy:

a. Location or the Site

You have to choose on whether you want to live in the city or the countryside. In choosing the place, the amount of time in commuting to and from your workplace would be one factor in decision making. You have to look around for social/cultural/economic amenities as well. The most important consideration is the nearby school for your children to attend to and the travel time involve.

b. Size of the Home

The space requirement for all members of the family should also be considered: how many bedrooms are needed; and the additional rooms that will be used as library, office, exercise area, and the number of cars on the garage.

c. Special Features

There is need to ascertain additional home requirements —-for storage facilities, music room, study area, swimming pool, and the need for air conditioning.
Other considerations would include extra facilities when you may have family members with health issues. Other factors would include cost savings for energy consumption and the retention of indoor air quality that is environmentally friendly.

d. Lifestyle Changes
This includes possible changes in the future. Among the changes are — plans to have children, members moving away soon, or plans of retirement. Your choice of a home has to factor in changes that may occur in the years to come.

II. New Versus Resale Homes

In choosing a home to buy, you have two choices—- whether to buy a pre-owned home (or resale) or a new home.

a. For New Homes In Toronto.

If you choose to buy a new home, the advantages follow: modern and with the most up-to date designs in the market; possibilities of upgrade on home features like siding, flooring, choice of cabinets, and rework of plumbing and electrical facilities.
The disadvantages would be: peripheral facilities like shopping malls, schools, and other social services may not be in place yet, and; it may cost you extra for additional minor improvements like — fireplace, garden, and pavement of the driveway and walking area. It is better to know what is included for the amount that you pay before you decide to buy.

b. For Resale Homes In Toronto.

There are many advantages when you opt to buy resale homes: easy access to social and economic services; facilities like schools, shopping malls, church and other social facilities exist. The home may have built-in services like fireplace, basement area, study or music rooms, and the addition of a swimming pool. The downsides are: the need to renovate and redecorate; and the additional cost in having the roof, floor, shingles, doors repaired and repainted.

III Decision on Which Type of Home to Buy In Toronto.

There are many different types of homes that you can choose from and each one of them may have their own advantages and disadvantages. Your choice would depend on your specific needs.

Examples of the types of homes to choose from follow:

a. Single Family Detached Home In Toronto.

A house that stands alone in its own lot offers great privacy to the home owner.

b. Semi-Detached Family Home In Toronto.

This is a single family home that adjoins another unit, with only a wall to separate them. It offers some privacy and may be less costly to buy and maintain as compared to a single family detached home.

c. Row Houses or Townhouse in Toronto

These consist of several single family homes, situated side-by-side, and separated by common walls. They can either be freeholds, condominiums or rental units. They offer less privacy than single-family detached home but still gives the homeowner individual outdoor space. These homes are less costly to buy and maintain – and choices may include large and luxury units that are adequate for your needs.

d. Link or Carriage Home

These are houses with joint garages or carports, and a single access to the front and back yard area. Builders sometimes build basement walls to create an illusion of link houses or single-family homes on smaller lots. These choices are less expensive than single-family detached homes.

e. Condominiums and Strata

A condominium and strata are residential units that are constructed as high rise residential building, townhouses complexes, individual houses or low rise residential buildings.

Whatever type of home that you decide on buying, and you need help to answer all your queries —- please be assured that we are just a phone call away. Or you can send us an e-mail and we will attend to it immediately!

]]>http://www.torontorealestatelife.ca/finding-your-perfect-home-in-toronto/feed/0What this west-end bidding war says about Toronto’s housing markethttp://www.torontorealestatelife.ca/what-this-west-end-bidding-war-says-about-torontos-housing-market/
http://www.torontorealestatelife.ca/what-this-west-end-bidding-war-says-about-torontos-housing-market/#commentsWed, 26 Feb 2014 00:12:36 +0000http://www.torontorealestatelife.ca/?p=2609What this west-end bidding war says about Toronto’s housing market The house that was for sale along Perth Avenue and Junction Triangle is nothing extra-ordinary. It is a simple house that is more or less the same as those lined up along the area. However, its recent sale got everyone into frenzy. These include the entire neighbourhood and the real Continue Reading

The house that was for sale along Perth Avenue and Junction Triangle is nothing extra-ordinary. It is a simple house that is more or less the same as those lined up along the area. However, its recent sale got everyone into frenzy. These include the entire neighbourhood and the real estate players in the Toronto area.

Houses priced below the $800,000 price range are a good buy in a tight market where demand outstrips supply. With recession, low priced houses are lapped up easily the moment they are offered for listing. The said house, with its tasteful renovation, and in a neighbourhood that is becoming upscale, is considered as one of the first “good buy” for the year.

The bidding during the open house last weekend attracted more than 400 people. These bidding veterans checked on the highly sought after property: up to date renovation in the kitchen and bathroom areas, appliances made of stainless steel, and proximity to — schools, transport, and the city central area.

The deadline for submission of offers was 7p.m. on Tuesday night. There were 32 offers that were submitted and the winning bid was $848,625, which was more than the asking price of $639,900. This bid was over by $210,000 or 33 percent higher than the listed price.

The owner and co-listing agent, Mike Gryspeerdt, was overwhelmed by what happened. He lived with his family in the house for 12 years and did not expect the bidding frenzy that ensued. He was shocked by what happened and apologized to everybody when he faced frustrated house hunters and real estate investors.

Realtors within the area, though prohibited by the organization (Real Estate Council of Ontario) to speak out against competitors, felt that the property in Pert Avenue was priced very low. Similar prices along the area ranges from beyond $700,000.

Everyone agrees that the house was listed low since a similar house on Perth Avenue sold for $730,000. This sentiment was relayed by buyer representative, Maggie Lind. The house should have been priced higher since it has add-ons like —designer kitchen, top of the rank basement music studio, and high efficient improvements all over the house.

Gryspeerdt, believes that the number of bids represent a high record for Toronto. It may be because the Junction Triangle area is considered as prime property with a good neighbourhood to boot.

Realtors in the area say that what happened in Perth Avenue represents the many problems that face the real estate market. This is in contrast to the best efforts made by Finance Minister, Jim Flaherty.

The most pressing problem is the lack of inventory listing of properties that are for sale in the area. The Toronto Real Estate Board (TREB) noticed the sudden drop in real listing of homes for sale since the start of recession in 2008.

The listings for homes dropped down by 17 percent in 2012. The figures dropped down further by 14 percent in 2013, says TREB. The average listing is 16,000 homes, including the slow months of December.

The predicament now is on where to go — if prices move up that will be considered drastic. People are not buying that, what they are doing is staying put and doing some renovations. It can cost $100,000 to make the next move.

TREB cites that other problems that befuddle real estate brokerage are the doubling of land transfer taxes in Toronto. In addition, the real estate brokers themselves are to be blamed since they insist on keeping the five percent commission — thereby pushing fees and house prices sky high.

Another problem that faces the industry is the tight mortgage credit. It has become difficult to buy a $1 million plus house with less than 20 percent down payment. Hence, buyers are now opting for the lower priced homes, say mortgage broker Steve Garganis.

There were also buyers who waited it out, with the expectation that prices will drop in the last two years. They realized that it did not. However, in condominiums, prices are going down since supply is more than the demand.

Sales have gone down in the last two quarters of 2013, but have not affected prices. The average price for a detached home is $894,654 in Toronto by middle of January. This figure represents a 21.1 increase from the previous period, per TREB.

Semi-detached homes had gone up by 14 percent, or an average of $581,475.
Semis were up almost 14 per cent, to an average of $581,475.

Other factors that compound the problem are newbie realtors with less than five years’ experience. They lack the professional expertise to neither gauge the market nor rein in prospective buyers. This was the assessment of the Toronto board with some 37,000 realtor members.

Realtors who have been long in the business, oftentimes say that every bid contributes to price movements in the overall house prices. The recent sale of the said Perth Avenue home will serve as the benchmark of prices for realtors coming up with their new price listing.

The public oftentimes blame the realtors and agents for under listing, but realtor David Fleming says, “Realtors are not doing a good job of informing their buyers.”
Every sales agent looking at Perth properties should always think that prices can go beyond $800,000. And they do, says Lind – the broker for the winning bidder. Though she refused to discuss about her client, all she can say is that they are “ecstatic”

She further mentioned that the property that her client bought is a fabulous house, and would not need further renovation.